Kenmare posts Q3 2022 Production Report

Kenmare Resources plc, the company that operates the Moma Titanium Minerals Mine in northern Mozambique, has just introduced a trading update for the quarter ending 30 September 2022.

The company reported the primary zircon production of 17,300 tonnes, a 10% increase compared to Q3 2021 (15,700 tonnes), benefitting from increased HMC processed and improved recoveries.

Michael Carvill, Managing Director, said: “Ilmenite production increased 25% in Q3 compared to Q2, returning to an annualised run rate of 1.2 million tonnes per annum and benefitting from higher mining rates and ore grades. Shipments increased 48%, following the return of our largest transshipment vessel from scheduled maintenance, and we expect Q4 to be our best quarter of the year for both shipments and production.”

Demand for Kenmare’s zircon products remained strong in Q3 and this is continuing in Q4, supported by supply constraints, although the global zircon market is showing signs of weakness, particularly in China.

As previously announced, one of Kenmare’s two transshipment vessels, the Bronagh J, left site in early May 2022 for its five-yearly dry dock maintenance work, reducing significantly Kenmare’s shipping capacity in Q2 and Q3 2022.

The Bronagh J returned to site on 25 August and shipping volumes increased significantly in September.

Typically, Q4 is the strongest quarter of the year for shipments due to seasonally favourable weather conditions; and, with both vessels now in operation, finished product inventories are expected to return to normal levels during H1 2023.